Huntsman to cut European TiO2 capacity by 13%
2/12/2015 12:00:00 AM
Huntsman plans to reduce its titanium dioxide (TiO2) capacity by approximately 100,000 tons, representing 13% of Huntsman's European TiO2 capacity, the chemicals company announced Thursday.
The plan will generate approximately $35 million of annual savings., according to Huntsman officials.
As part of the plan, Huntsman is proposing to close certain operations at its site in Calais, France. Huntsman says it will close the 'black end' manufacturing operations and ancillary activities during 2015.
The 'black end' is responsible for the start of the titanium dioxide manufacturing process. The 'white end' is used to finish and pack TiO2 and will remain operational, employing up to 100 people on the site.
"With the recent deterioration in industry conditions, we have reviewed our manufacturing network in terms of cost and potential," said Huntsman CEO Peter R. Huntsman.
"We are confident that by rationalizing our capacity, we can continue to meet our customer's needs and improve our competitiveness as we create a market-leading pigments and additives business," he added.
This announcement is in addition to the company's plan announced in December 2014. Annual cost savings from that plan are expected to be approximately $130 million and will be achieved by the middle of 2016, Huntsman says.
The plan announced Thursday will be negotiated in consultation with employees and representative groups.
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